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Today you have a total of $400,000 to spend. You decide to take $200,000 of that money and use it to buy one unit of

Today you have a total of $400,000 to spend. You decide to take $200,000 of that money and use it to buy one unit of housing.

Part A) Suppose that tomorrow, the price of all housing in your community, including the price of the house you own, doubles. Are you better or worse off? Explain AND ILLUSTRATE.

Part B) Suppose that tomorrow, the price of all housing in your community, including the price of the house you own, falls by 50%. Are you better or worse off? Explain AND ILLUSTRATE.

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